Bitcoin treasury company Twenty One Capital said the New York Stock Exchange has warned it could be designated as non-compliant with listing standards next week unless it resolves a governance deficiency tied to its audit committee.
Twenty One Slides After Board Departure Triggers NYSE Non-Compliance Warning
1 June 2026 - 20:18 CEST
By Ana Pereira
Shares of Tether-backed Twenty One (XXI) were down about 5% at $6.90 as of 17:00UTC on 1 Jun after the company disclosed it had received a formal notice from the NYSE stating that it no longer meets requirements for audit committee independence. If the issue is not remedied by 5 Jun, a "below compliance" indicator will be attached to the stock from 9 Jun. The company said it expects to appoint an additional independent director as soon as practicable.
The compliance reflects board changes linked to Tether's acquisition of SoftBank's stake in Twenty One last month. SoftBank representatives stepped down from the board following the transaction, leaving the company without the minimum of two independent audit committee members required under NYSE rules.
Shares under pressure
While the notice does not immediately affect Twenty One's listing, the company acknowledged in the filing that continued non-compliance could ultimately lead to suspension or delisting proceedings.
The notice adds to pressure on Twenty One shares, which have struggled since the company began trading on the NYSE in December following its merger with a Cantor Fitzgerald-sponsored shell company. The stock is down roughly one-third from its debut at $10.74.
Beyond the treasury
Twenty One is a crypto treasury company focused on accumulating Bitcoin through equity and debt financing.
The governance issue arrives as it attempts to expand beyond its original role as a Bitcoin accumulation vehicle. The company holds 43,514 Bitcoin (BTC) and has outlined plans to build businesses spanning Bitcoin financial services, lending, mining and capital markets.
Backed by Tether, Bitfinex and Cantor Fitzgerald, Twenty One launched in 2025 under CEO Jack Mallers and has become one of the largest corporate holders of Bitcoin, second only to Strategy among public companies.
Tether increased its ownership in Twenty One on 20 May after acquiring SoftBank's stake in a shareholder-to-shareholder transaction involving 89.1mn Class A shares. The stablecoin issuer said the deal would further align the company's shareholder base with its long-term Bitcoin strategy.
